Question

One of the most common types of life insurance is the whole life insurance policy. Which of the following is a typical characteristic of a whole life policy?

a. The premiums remain level for the entire period that the policy is in force.
b. Whole life policies have a guaranteed cash value.
c. The face amount of the policy does not change while the policy is in force.
d. All of the above

Answer 1

A typical characteristic of a whole life policy is that the premiums remain level, it has a guaranteed cash value, and the face amount of the policy does not change.

Step-by-step explanation:

A typical characteristic of a whole life policy is that the premiums remain level for the entire period that the policy is in force. This means that the policyholder will pay the same amount of premium throughout the life of the policy.

Another typical characteristic is that whole life policies have a guaranteed cash value. This means that the policy will accumulate a cash value over time, which can be used by the policyholder.

Lastly, the face amount of the policy does not change while the policy is in force. This means that the death benefit, or the amount that will be paid to the beneficiary upon the policyholder's death, remains the same.

Therefore, the correct answer is d. All of the above.